Authorities in an Australian town have rejected proposals to allow an Islamic school to be built there.

Councillors for Camden, a small town on the outskirts of Sydney, unanimously voted against the proposed school for 1200 pupils.

The councilors said they based their decision solely on planning grounds, citing an internal report about its environmental impact.

The proposed development had met with fierce local opposition.

Camden's authorities received some 3,200 submissions from the public about the school and only 100 in favor.

The BBC's Nick Bryant in Sydney says Camden does not have a large Muslim population so most of the pupils for the proposed school would have had to be bussed in from Sydney, an hour's drive away.

"They've got terrorists amongst them, OK? We can't say they haven't - they have," said one resident.

"We're quite happy to integrate, we happily integrate with Italians, Greeks, English, Scottish - this town has every nationality. Muslims do not fit in this town - we are Aussies, OK?"

The Quranic Society, the organization behind the proposal, has kept a low public profile throughout the process.

Its position has been that Australian parents have the right to educate Australian children wherever they wish, regardless of race or religion.

An internal Camden council report had earlier recommended against construction, mainly citing traffic concerns.

PHOTO CAPTION 

Australia map locating New South Wales

BBC